US Airways has announced that it has withdrawn from merger discussions with larger rival United Airlines, leaving it only with Continental Airlines as a potential merger partner.
US Airways said that while it still believed in consolidation, the airline’s management had decided to discontinue discussions with United. It is the first acknowledgement that it has been in discussions with United, which were first reported earlier this month.
United is expected to now turn its attention to a possible tie-up with Continental, with whom it held merger discussions with in 2008 which ultimately failed but led to Continental joining the Star Alliance under a major strategic alliance with United. Both carriers have not yet confirmed that they are in talks, but reports have suggested that they are much more advanced than the talks United was having with US Airways due to the foundation set during the initial negotiations two years ago.
